Deutsche Bank Tr. Co. Americas v. Sfr Invs. Pool 1, LLC

Summary

The Nevada Supreme Court held that an HOA may not allocate a homeowner's partial payment in a manner that jeopardizes a first deed of trust or deprives the homeowner of the property's security, absent express authorization. Applying that rule, the court determined that the homeowner's payments satisfied the HOA's superpriority lien, so the HOA foreclosure did not extinguish the deed of trust and the purchaser took the property subject to it. The court reversed and remanded for entry of judgment for the deed-of-trust holder.